Two of the best-known names in management consulting, Booz & Co and AT Kearney, are in talks over a deal to bring the firms together for forming the world's third-largest consultancy, a media report said.
No decision has been made yet and the talks still stand the chance of falling apart, the Financial Times said, attributing the information to inner sources.
In addition, any deal would need to win the approval of the partners of the two firms.
If the pact comes through, the combined entity would become the world's third-largest independent strategy consultants, behind McKinsey and the Boston Consulting Group.
According to the publication, Booz & Co and AT Kearney declined to comment on the matter.
The deal would come at time when consultancy firms are seeking to expand their global operations to meet the increasingly international needs of their largest clients.
Furthermore, the industry is facing pricing pressure in certain geographic markets and areas of the business. According to Kennedy Consulting Research and Advisory, average rates per hour fell by 10 to 15 per cent last year with pressure on fees continuing into this one.
AT Kearney had revenues of $786 million last year, down from about $900 million in the previous one. The firm has 2,700 employees, of which about 240 are partners, across 37 countries worldwide.
Booz, which garnered a revenue of about $1 billion last year, has 3,300 staffers and about 200 partners in 33 countries.
